Al Zour petrochems complex set to get un-stuck

Long-stalled Kuwait petchem complex moving again?

Kuwait’s USD 10 bn petrochemicals complex may finally get moving after a state-driven corporate reshuffle. State energy planners dissolved Kuwait Integrated Petroleum Industries Company (KIPIC) and folded its operations into Kuwait National Petroleum Company (KNPC) — part of a government-mandated overhaul of eight public oil entities aimed at cutting bloat.

The stalled project: KIPIC has been running the massive Al Zour megaproject, whose USD 16 bn, 615k bbl/d refinery came back online fully in early 2024. The adjacent USD 10 bn petchem complex has been on ice while planners tried to pin down exact costs and feasibility. Once built, the complex is slated to produce 2.7 mn tonnes of aromatics and polypropylene per year alongside 1.7 mn tonnes of petrol — most earmarked to stay local as industrial feedstock for Kuwait’s homegrown manufacturing sector.

More homes on King Fahad Road

Saudi real estate developer Retal Urban Development signed a development management agreement to develop the SAR 1.9 bn (USD 510 mn) Retal Heights mixed-use project in Riyadh’s Al Malqa district, according to a Tadawul disclosure. Retal signed the agreement with Sakan Al Malqa Real Estate Company — a fund managed by SAB Invest — and holds a 24.5% stake in the fund. The development will go up on a 19.4k sqm site along King Fahad Road, with construction set to take up to 48 months.

Bahrain cools off

Bahrain’s property market is feeling the impact of waning sentiment, with transaction volumes dropping 27% y-o-y in 1Q 2026 to 2.2k, according to data (pdf) from Bahrain’s Real Estate Regulatory Authority. Transaction values similarly fell 26% y-o-y during the quarter to BHD 284 mn (USD 753 mn).

Foreign buyers led the retreat, accounting for just 9% of overall transactions during the quarter — down more than 3 percentage points y-o-y — while the value of transactions with foreign buyers dropped 20% y-o-y to BHD 18.6 mn. Bahraini buyers proved more resilient, with transaction volumes edging up 1.6%, though spending shifted toward lower-priced properties as purchase values fell 26%.

Phase two

Aramco is bringing on the second phase of Jafurah’s cogeneration infrastructure, awarding South Korea’s Kepco a power and steam sales agreement, along with a c. USD 560 mn with Doosan Enerbility, which will build the facility and supply key equipment. This project forms part of the supporting infrastructure needed to operate the broader Jafurah gas field.

Extended railway

Hejaz Railway all the way to Oman? Turkey is looking to potentially extend the long-discussed revival of the Ottoman-era Hejaz railway — which once linked Saudi Arabia to Turkey via Jordan and Syria — to Oman, Transport Minister Abdulkadir Uraloğlu said. The extended railway would create a potential alternative route to the Strait of Hormuz, with negotiations with Saudi Arabia currently underway.

The push is part of Ankara’s broader corridor strategy, including the 1.2k km Iraq Development Road linking Basra to the Turkish border, whose design phase is complete, and the Zangezur Corridor, where the 224 km Kars–Iğdır–Aralık–Dilucu line has been tendered and construction has begun.